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Amount Due = Relative Amount/Base Amount * Invoice Amount

If you select 'Include tax and freight' as the First Installment field value for a payment term, the base amount and the relative amounts that you specify for this term's payment schedules only indicate how the original line amounts of the invoices to which you assign this term are distributed across different installments.

In this case, the original freight and tax amounts are included in the first installment in addition to the line amount allocated by the ratio of the base amount and the relative amount that you specify for the term's first payment schedule. Receivables uses the following equation to determine the original amount due for the first installment of invoices to which you assign this payment term:

Amount Due = (Relative Amount/Base Amount * Base Line Amount) + Base Freight Amount + Base Tax Amount